Crude Oil and Gold

Since March 2009, U.S. stocks (including dividends) have returned 400%, quintupling in value, and many investors are naturally worried that the fun may end soon. They’re looking for other places to put their money, and two popular choices are oil and gold. In recent years, neither commodity has moved in tandem with the stock market.

Oil has taken a wild ride. A barrel of Brent Crude, the global benchmark, bottomed at about $34 at the end of 2008, soared to $126 in 2012 and fell to $29 in early 2016 before rising to $85 today. The price of an ounce of gold has increased by only about one-third since stocks bounced off their lows of nearly 10 years ago. Gold jumped above $2,000 in 2011, but the metal dropped by nearly half within four years and has since been trying to keep its head above water.

The major benefit of oil these days is that everything depends on oil. We need it to run our society, so there is always going to be a demand for it. Because of that, it makes a great choice in terms of investment. It’s important to understand that you’ve got to tap into the supply and demand market. You need to look at making decisions that you will make a good profit on later down the line. The price of oil has risen in the last ten years quite considerably, and it’s likely to do the same again in the future too.

You have to think about what it is that makes gold such a popular investment. The main thing you need to understand is the attitude that people have towards it. Gold is seen as a big luxury and status symbol. And, by investing in gold, you will be improving and boosting your profile. People will see you as an investor to be taken seriously, and someone at home in the luxury market. You might be surprised by what doors this can open for you in your life.